Movie theaters were once thought dead due to the COVID-19 pandemic. However, AMC Entertainment Holdings Inc. (NYSE: AMC) is making the case against that with its most recent capital raise.

The company announced that since December 14, 2020, it has successfully raised or signed commitment letters to receive $917 million of new equity and debt capital. Management believes that this increased liquidity should allow the company to make it through this dark coronavirus-impacted winter.

In terms of the breakdown, AMC has raised $506 million of equity, from the issuance of 164.7 million new common shares, along with the previously announced securing of $100 million of additional first-lien debt. Additionally, the firm has executed commitment letters for $411 million of incremental debt capital in place through mid-2023.

As it stands now, management estimates that its financial runway has been extended deep into 2021. AMC also is presuming that it will continue to make progress in its ongoing dialogue with theater landlords about the amounts and timing of owed theater lease payments.

Again management indicated that, considering the push to vaccinate the general population, an increase in cinema attendance seems likely. However, the firm does note that there is still much uncertainty regarding COVID-19.

CEO and President Adam Aron went as far to say that, with this most recent capital raise, “any talk of an imminent bankruptcy for AMC is completely off the table.”

AMC Entertainment stock traded up about 31% to $4.60 Monday morning, in a 52-week range of $1.91 to $7.78. The consensus price target is $2.15.

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